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Cost Report, Value-Added and Non-Value-Added Costs Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up
Cost Report, Value-Added and Non-Value-Added Costs Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: Activities Activity Driver Purchasing parts Receiving parts Moving parts Setting up equipment SQ Purchase orders Receiving orders Number of moves Setup hours AQ 2,300 3,490 $370 4,600 7,300 340 0 1,300 240 0 7,600 255 SP The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. If an amount is zero, enter "0". Sanford, Inc. Value- and Non-Value-Added Cost Report For the Year Ended December 31, 20x1 Purchasing parts Receiving parts Moving parts Setting up equipment Total Value-Added Non-Value-Added 2. Which activities are non-value-added? Moving parts and Setting up equipment Purchasing parts Receiving parts Actual
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